Lockheart price depends on xsx pricing which in large part depends on ps5 pricing. MS wants to have the most powerful console while being priced as low as or lower than its competition. Lockheart is supposed to be an entry level next gen system. They want something on the market that addresses these goals
- service 1080p tv owners while offering next gen graphics
- offer an easy upgrade path for xbox one /s ps4 base owners who bought the console for $200-$300 and want next gen graphics but not the price tag
- a strong platform for xcloud / game pass
- a good secondary unit in peoples homes to complement the xsx
As for fire tv size that is the ultimate goal as I said. It wont be that size at launch although it will still be small for a console. They want a piece of technology that can eventually fit multiple form factors and they want something that when you go to the store and want to get little jimmy or suzzie a gaming system or media device for their tv you say well they sure like playing on the family rooms xbox series x , why don't I get them lockheart and oh look its much smaller and cheaper and they can use this for Netflix and hulu and Disney plus . Then they go and buy that.
If they put out a streaming only box it would be much cheaper like fire stick pricing off the bat.